Gold Price Trims Gains As Fed's Rosengren Favors Three Hikes

New York (May 10)  Gold futures were slightly higher Wednesday, unable to sustain early gains amid muted reaction to President Trump's firing of FBI Director James Comey.

In a rare move, the White House removed the head of the FBI. Critics say the dismissal is related to Comey's investigation of Trump's ties with Russia, but the president says Comey was doing a "poor job."

June gold settled at USD1,218.90/oz, up USD2.80, or 0.2%.

Import prices in the US rose by more than expected in the month of April, according to a report released by the Labor Department on Wednesday, with the increase partly reflecting a rebound in prices for fuel imports.

The Labor Department said import prices climbed by 0.5% in April after a revised 0.1% uptick in March.

Boston Fed President Eric Rosengren said the Fed should re-think its forecast for only two more interest rates this year.

"Along with a gradual reduction in the level of the balance sheet, it would still be reasonable to have three rate increases over the remainder of this year," Rosengren said.

Source: AllianceNews